Odd versus even: Comparative statics in multicommunity models

Raquel Fernández

    Research output: Contribution to journalArticle

    Abstract

    This paper examines the comparative statics properties of multicommunity models in which perfect sorting is not obtained because the number of types of individuals is greater than the number of communities. In general, equilibrium is inefficient and policy interventions can be Pareto improving. The paper shows that the welfare effects of a given policy depend critically on whether the number of communities is odd or even. The same policy intervention that is Pareto improving for an even number of communities can make all worse off if the number of communities is odd.

    Original languageEnglish (US)
    Pages (from-to)177-192
    Number of pages16
    JournalJournal of Public Economics
    Volume65
    Issue number2
    DOIs
    StatePublished - Aug 1997

    Keywords

    • Multicommunity models
    • Odd versus even
    • Tiebout

    ASJC Scopus subject areas

    • Finance
    • Economics and Econometrics

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